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Expert witness statement of MrEdward Joseph BechbergerExpert for Gunns Limited

Expert witness statement of Edward J Bechberger

In the matter of the Bell Bay Pulp Mill Project: A project of State Significance ResourcePlanning and Development Commission inquiry

Proponent: Gunns Limited

1 Name and address

ERCO Worldwide, A Division of Superior Plus LP

302 The East Mall, Suite 200

Toronto, Ontario, Canada

M9B-6C7

EDWARD J BECHBERGER

2 Area of expertise

My area of expertise, in so far as it applies to the matters before the Commission, is Chlorinedioxide production processes.

My qualifications and experience are detailed in Attachment 1.

I am sufficiently expert to make this statement because ERCO Worldwide, A Division of SuperiorPlus LP (“ERCO”), is one of the first chemical companies and has been operating in Canada since1897. ERCO currently operates seven sodium chlorate, two chlor-alkali facilities and two chlorinedioxide plants for the production of sodium chlorite. Additionally, ERCO has more than 75 years ofoperating experience in the manufacture of sodium chlorate (Canada, USA and Chile) andapproximately 40 years of experience in the operation of chlor-alkali plants in both Canada and theUSA. ERCO is one of two companies in the world that over the past 50 years has developed aseries of chlorine dioxide processes to meet the changing needs of the industries that use chlorinedioxide. ERCO has supplied over 150 chlorine dioxide processes and has assisted manycompanies in improving the operation and safety of their plant.

For the past 25 years I have worked for ERCO in the field of chlorine dioxide technology, and themarketing of sodium chlorate and process technology. During this period I spent several years as atechnical service representative working with customers to trouble shoot operational issues withtheir chlorine dioxide systems, as well as commission new ERCO Series chlorine dioxideprocesses. This involved the integration of the chlorine dioxide and co-products into the millsbalance, and also liaison with ERCO’s and the mill’s design teams to determine the process mostsuited to their particular needs.


3 Statement Summary

The following witness statement was prepared to support and clarify the information supplied byGunns in the draft IIS with respect to the chemical plant and in particular the chlorine dioxideprocess described in the base case and option #1 as integrated technology.

The draft IIS described the chemical plant in these two cases as consisting of an integratedchlorine dioxide system. The concept of an integrated chlorine dioxide plant has been associatedwith the pulp and paper industry for many years and is in use at a number of pulp mills around theworld. This type of process has been adopted mainly in regions or mills where either the localeconomics or site remoteness justifies the on-site manufacture of the major bleaching chemicals.

The integrated chlorine dioxide process typically consists of a chlor-alkali plant in which caustic(sodium hydroxide) and hydrochloric acid are produced, a sodium chlorate and chlorine dioxideplant. These three plants are linked in that the chlorine dioxide process consumes sodium chlorateand hydrochloric acid in the production of chlorine dioxide (for bleaching), chlorine (recycled toproduce hydrochloric acid) and sodium chloride (salt) recycled back to the chlorate plant. The twomain raw materials required for this integrated chlorine dioxide plant are salt (for the chlor-alkaliproduction) and electrical energy (for both sodium chlorate and chlor-alkali production).

The general description of the chlorine dioxide system in the draft IIS was of a generic nature andonly lightly covered the details of the process that result the production of chlorine dioxide solutionachieving the low levels of residual elemental chlorine as outlined in the “Recommendedenvironmental emission limit guidelines for any new bleached eucalypt kraft pulp mill in Tasmania,Volume 2”.

The objective of this expert witness statement is to provide a more detailed description of thechlorine dioxide process (section 4), a relevant publication on use of hydrochloric acid in theproduction of chlorine dioxide (section 3 of Attachment 3), general literature on the chlorine dioxideprocess (Attachments 4 and 5) and to provide twelve months of operating data (Attachment 2) froma similar system that ERCO operates at its chemical plant in Buckingham, Quebec, Canada.

ERCO has operated an integrated chlorine dioxide system at Buckingham since 1987 for theproduction of sodium chlorite. In 1998 the operation was modified to produce ultra pure sodiumchlorite. The modifications involved the use of hydrogen peroxide to convert the residual elementalchlorine in the chlorine dioxide solution to hydrochloric acid. Since 1998 ERCO has consistentlyoperated the chlorine dioxide plant in this manner and has provided a recent twelve months periodof operating data from the plant, which demonstrates the residual elemental chlorine in the chlorinedioxide was maintained equivalent to an average of 0.005 kg chlorine per kg chlorine dioxide in thefeed to the chlorite reactor. This data also indicates that during this period the elemental chlorineranges from 0.003 to 0.01 kg chlorine per kg chlorine dioxide.

The above demonstrated levels of residual elemental chlorine are within the range recommendedin the limit guidelines and as described by Beca AMEC as being achievable by chlorine dioxideprocesses utilizing either methanol or hydrogen peroxide as the reducing agent. Since both themethanol and hydrogen peroxide based systems are considered as Acceptable ModernTechnology (AMT) ERCO is representing that the ERCO R5 process is a viable option for Gunnsand the information provided is evidence/proof that the process has been in operation for manyyears and should be regarded as Acceptable Modern Technology.

This statement also covers the items related to the chemical plant raised in the conclusions of theBeca AMEC Limited review of the Gunns draft IIS tittled “Appendix A Review of Section 6.3.4 –Bleaching Chemical Preparation of Gunns’ Draft Integrated Impact statement”.


4 Chemical Production Plant

4.1 Instructions

During the preliminary design phase of the pulp mill project, ERCO was requested by Gunns to bidon the supply of the chemical storage and production facility (“chemical island”) for the pulp mill.The request of Gunns set out the scope and other requirements of Gunns and described thechemicals needed for the mill as well as the utilities and raw materials available. During the initialmeetings with Gunns, it became evident that the pulp mill would have surplus power available atlevels that would support the production of the majority of the bleaching chemicals needed. Thescope also identified the need to have low chlorine residual in the chlorine dioxide solution suppliedto the fibre line. In order to meet this need, ERCO offered to Gunns a process similar to the oneERCO operates at its chemical plant in Buckingham, Quebec, Canada.

The responses arising from the community consultation process indicated to Gunns that anexplanation should be provided on the use of a chlorine dioxide system, combined with a sodiumchlorate and chlor-alkali plant to produce chlorine dioxide and caustic soda required by the fibreline. ERCO is representing that the ERCO R5 process is a viable option for Gunns and I have beenasked to provide evidence/proof that the process has been in operation for many years and shouldbe regarded as Acceptable Modern Technology (AMT).

4.2 Background and Technology Development

In 1987 ERCO (then Albright & Wilson Americas, A Division of Tenneco Canada Inc.) began theproduction of sodium chlorite at its chemical plant in Buckingham, Quebec. The process developedby ERCO integrated an ERCO R5 chlorine dioxide process with the existing merchant sodiumchlorate plant at the site. Since the ERCO R5 chlorine dioxide process reacts sodium chlorate withhydrochloric acid under controlled conditions, a significant amount of chlorine is co-produced withthe chlorine dioxide. This is typically in the range of 0.85 to 0.90 kg of chlorine per kg of chlorinedioxide. For cost and purity reasons ERCO wanted to lower the residual chlorine in the chlorinedioxide supplied to the sodium chlorite reactor.

After a series of meetings between ERCO R&D and Engineering it was determined that the bestmethod to accomplish this was to acidify the absorption water with hydrochloric acid. The publishedliterature in this field suggested that chlorine solubility experienced a minimum of between 0.5 and0.7 g/l chlorine at between 0.1 and 0.5 N HCl. In order to further reduce the concentration of thedissolved chlorine, ERCO also added a desorption or stripping stage to the process. However, theintroduction of air (used to remove the dissolved chlorine) provided only a marginal reduction andincreased the potential for chlorine dioxide loss from the absorptive step of the process.

The chlorine that exits the top of the absorption tower is sent to a chlorine burner along withhydrogen gas from the chlorate cell line and combined to produce some of the hydrochloric acid forthe chlorine dioxide reaction (additional acid is purchased).

Since the sodium chlorite produced is sold as a concentrated solution, the chlorine dioxide must bedesorbed or stripped from the aqueous solution (chlorine dioxide solution). This is accomplished byheating and then contacting the solution with air in a separate step prior to the chlorine dioxide gasentering into the chlorite reactor, where it is reacted with hydrogen peroxide and caustic soda toproduce sodium chlorite solution.

ERCO continued to operate the sodium chlorite plant in this manner until 1998, at which time itdecided to produce an ultra pure sodium chlorite product. In order to produce this ultra pureproduct, the residual chlorine in the chlorine dioxide solution had to be lowered even further.

Tests involving the application of hydrogen peroxide revealed that the chlorine could be virtuallyeliminated by its addition to the chlorine dioxide solution prior to stripping, and this wasincorporated into the design.

To support the effectiveness of the removal of residual chlorine, the operational performance of theprocess at Buckingham, Quebec ERCO has attached 12 months of operating data, (Attachment 2).


The operating data consists of daily production of both chlorine dioxide and sodiumchlorite. The production of chlorine dioxide is calculated based on the volumetric waterinputs to the chlorine dioxide absorption step, and the chlorine dioxide solutionconcentration measured continuously by a photometric analyser and checked daily by amanual test. The basis of the manual test procedure is the published TAPPI StandardJ.14P entitled 'Chlorine Dioxide Plant Analyses'. The neutral and acid potassium iodidetitration method is shown for the ClO2 Solution test, while the air stripping into neutral KIsolution is shown for the determination of ClO2 and Cl2 in the acidic generator solution(manual test procedure could be attached).

The Buckingham data show that the chlorine dioxide and residual chlorine concentrationsin the chlorine dioxide solution for the 12 months averaged 9.44 and 0.53 g/l respectively,and ranged from 5.1 to 10.7 g/l and 0.41 to 0.66 g/l respectively.

The next step in the process is the addition of hydrogen peroxide to convert the residualchlorine in the chlorine dioxide solution to hydrochloric acid prior to entering a desorber.The reaction between chlorine and hydrogen peroxide has been found to be veryeffective at reducing the chlorine. The chemical reaction is expressed as:

Cl2 + H2O2 2HCl + O2

Air is used in the desorber to strip the chlorine dioxide gas from the solution (anyremaining chlorine would also be stripped) and transport it to the chlorite reactor, wherethe chlorine dioxide reacts with peroxide and sodium hydroxide to produce theconcentrated sodium chlorite solution.

It is important to note that any chlorine gas that enters the chlorite reactor with thechlorine dioxide would also react with the peroxide and caustic to produce sodiumchloride via the following overall reaction.

Cl2 + 2NaOH + H2O2 2NaCl + O2 + 2H2O

The presence of sodium chloride provides a direct measure of the chlorine remainingafter the treatment with hydrogen peroxide described above. At Buckingham, ERCOmonitors the sodium chloride in the finished sodium chlorite product and includes it in thecertificate of analysis of the sodium chlorite product sent to the customers, and forreference has included the sodium chlorate and sodium chloride analysis associated withevery shipment during the twelve month period. The sodium chlorite and sodium chloridetest methods are the American Water Works Association standards, in this case ANSI /AWWA B303-05 (Attachment 3).

The sodium chlorite and sodium chloride concentrations for the same twelve-monthperiod averaged 501 and 3.3 g/l respectively. This is equivalent to an average of 0.005kg chlorine per kg chlorine dioxide in the feed to the chlorite reactor. The data rangesfrom 0.003 to 0.01 kg chlorine per kg chlorine dioxide. ERCO has not taken intoconsideration the sodium chloride introduced to the sodium chlorite solution with thesodium hydroxide since the sodium chloride was low (95 ppm).

The above Buckingham data provides a demonstrated track record that a low chlorineintegrated chlorine dioxide plant is technically effective and economically viable in anindustrial mode. Further, based on the guidance provided by the Resource Planning andDevelopment Commission (Recommended environmental emission limit guidelines forany new bleached eucalypt kraft pulp mill in Tasmania, Volume 2) based on Table 4 page20, the ERCO process merits the description of AMT for bleaching chemical preparationin that it is “On-site generation of chlorine dioxide with low contamination of elementalchlorine (methanol or hydrogen peroxide processes)”. This low elemental chlorine contentis further reinforced by Beca AMEC Limited in their “Appendix A Review of Section 6.3.4– Bleaching Chemical Preparation of Gunns’ Draft Integrated Impact statement” dated


October 2006, in which they state the elemental chlorine contamination for a methanol orhydrogen peroxide based chlorine dioxide generator is 0.005 to 0.01 kgCl2/kg ClO2.Therefore the ERCO R5 chlorine dioxide process with post treatment of the chlorine asdescribed at ERCO’s Buckingham site falls within this range and therefore should also beconsidered as AMT based on the low elemental chlorine present in the final chlorinedioxide solution.

Bell Bay Plant

Gunns required the chlorine dioxide generating system to achieve chlorine concentrations incompliance with the referenced 0.2 g/l residual in the chlorine dioxide solution supplied to thebleaching stages (as indicated in the Recommended environmental emission limit guidelines forany new bleached eucalypt kraft pulp mill in Tasmania Volume 2).

Since ERCO is not aware of any pulp mills operating a chlorine dioxide plant at these low levelsusing hydrochloric acid as the reducing agent, ERCO considered a process that is being usedinternally for the manufacture of high purity chlorine dioxide for the manufacture of sodium chlorite.

The basic concept is to produce the chlorine dioxide in the same reactor design as the other ERCOcrystallizing chlorine dioxide plants (ERCO R3, ERCO R8, and ERCO R11) except that the chlorinedioxide would be produced by reacting sodium chlorate with hydrochloric acid. The products fromthis reaction are chlorine dioxide (gas), chlorine (gas) and sodium chloride (solid). ERCO refers tothis process as the ERCO R5 (a basic process description and flow diagram is in attachment 4 & 5respectively).

In the ERCO R5 process there are two conditions under which the reaction of sodium chlorate andhydrochloric acid occurs to be critical. The first is maintaining a constant absolute pressure in thesystem. This determines the temperature in the reaction liquor and is maintained by means of anindirect heater (reboiler) with low pressure steam. The second condition is the molar ratio ofchloride to chlorate in the reaction liquor. The lower the mole ratio the higher the gas purity of thechlorine dioxide produced, indicating that the preferred chlorine dioxide producing reaction isoccurring.

The two generally accepted reactions that occur in a chloride based chlorine dioxide process are asfollows:

Preferred Reaction:

NaClO3 + 2 HCl ClO2 + 0.5 Cl2 + H2O +NaCl

Undesired Reaction:

NaClO3 + 6 HCl 3 Cl2 + 3 H2O + NaCl

Since ERCO uses a crystallizing process, it is able to control the chloride to chlorate mole ratio inthe generator by evaporating more or less water. Because of the solubility differences betweensodium chlorate and sodium chloride under these conditions, the sodium chloride preferentiallycrystallizes and is removed from the chlorine dioxide process and returned to the sodium chloratecells. In addition the presence of sodium dichromate in the cell liquor influences the preferredreaction slightly, resulting in an improved conversion of the sodium chlorate to chlorine dioxide.Since the ERCO process evaporates the water entering the process, the concentration ofdichromate in the reactor can be significantly increased over what is normally supplied by the cellliquor. This provides a benefit in stabilising the process. Flow through or non-crystallizingprocesses cannot provide the same stability, since the chloride to chlorate ratio is dependent on theincoming cell liquor concentration.

The water vapour created from the evaporation/crystallization step is used to dilute and transfer thechlorine and chlorine dioxide produced from the reactor through a cooler and into the absorptiontower.


In order to ensure the chlorine dioxide solution produced is consistently below 0.2 g/l chlorine, thefollowing steps are:

1. The chilled absorption water is acidified with hydrochloric acid to a targetednormality of 0.1N. This is achieved by cascading the hydrochloric acid flow withthe chilled water flow. Published data indicated that the solubility of chlorine canbe suppressed by the presence of hydrochloric acid, with a minimum solubilitynear 0.1 to 0.2 N acidity, which then slowly increases once again as the acidityincreases.

2. The use of a small stripping (air) section on the bottom of the absorption tower tofurther reduce the chlorine solubility.

3. The remaining chlorine would then be converted to hydrochloric acid by theaddition of hydrogen peroxide to the chlorine dioxide solution as it is pumped tothe chlorine dioxide storage tanks. The flow of hydrogen peroxide would becascaded with the chlorine dioxide production rate.

This approach is consistent with the practice at Buckingham except that the chlorine dioxidesolution would be used directly by Gunns in the pulp mill.

5 Material Considered

In preparing this statement I have reviewed the following documents (insofar as they are relevant tothe chemical production plant), in addition to drawing on my own knowledge and experience andthat of ERCO:

• Development of new environmental emission limit guidelines for any newbleached eucalypt kraft pulp mill in Tasmania (2004);

• Appendix A review of Section 6.3.4 Bleaching Chemical Preparation of Gunns’Draft Integrated Impact Statement prepared by Beca AMEC Limited; and

• Section 6.3.4 of Volume 1 of the Draft Integrated Impact Statement submitted byGunns.

6 Response to Beca Amec Limited

I have reviewed the Beca AMEC Limited conclusions listed in their report titled “Appendix A Reviewof Section 6.3.4 – Bleaching Chemical Preparation of Gunns’ Draft integrated Impact statement”dated October 2006 and have the following comments:

Conclusion No. 1

I would agree with their general statement that the chlor-alkali process does require that theoperators be properly trained and supervised in order to ensure the system is safe and reliable.


Conclusion No. 2

I agree with Beca AMEC’s conclusion on the capability of the integrated chlorine dioxide (IDP) plantto consistently produce chlorine dioxide solution containing low levels of elemental chlorine withonly the use of acidified chilled water and the use of stripping air. ERCO observed that in order tosignificantly reduce the chlorine levels in the chlorine dioxide solution with air, the resultingeconomic loss of chlorine dioxide (also stripped) does not justify the practice. It was howeverdetermined that the addition of hydrogen peroxide to the acidified chlorine dioxide solution is aneffective and reliable means to reduce the chlorine content to very low levels as discussed earlier inthe statement. This view is supported by the operating from the facility operated at Buckingham,Quebec.

Conclusion No. 3

The issue raised in this conclusion is a global issue that is a concern for all pulp mills asthey tighten up the liquor cycle and adapt effluent recycle scenarios. The management ofnon process elements, particularly potassium and chloride becomes problematic and as aresult many pulp mills are installing chloride and potassium management (removalsystems) that will allow for the selected removal of these elements from the recoverycircuit. This is beyond my scope, but I understand that Gunns is planning on installingsuch a system. The impact on the capital cost would be a function of the precipitator ashor liquor requiring treatment to maintain the desired levels in the circuit.

Conclusion No 4

B.1 Emission is 10 mg/Nm3 Cl2. This is achievable with a caustic scrubber.

B.2 Emissions are about 5.6 mg/Nm3 ClO2 and 4.3 mg/Nm3 Cl2. This is achievable withperoxide/caustic scrubber as proposed. However flow rate is about 3 times greater thanfrom R-series generator. As such ERCO R-series generator emissions should be 1/3 ofstated emissions.

B.3 HCl emissions are about ½ the rate stated by an HCl burner supplier and Cl2emissions are about double. The lower values will be achieved by the addition of a smallcaustic scrubber after the standard water scrubber.

B.4 No Comment.

In summary all the identified gaseous emissions from the chemical plant as stated in thedraft IIS will be achieved.

Conclusion No 5

C1 Flow of 991 kl/d is a conservative number.


In the base case, the main liquid effluent will be from the chlor-alkali unit in the form of asulphate purge from the brine system. This brine purge is estimated at 0.06 m3 per tonneof sodium hydroxide produced, so if for example the production rate is 60 tonnes per dayof sodium hydroxide then the purge volume is estimated at 3.6 m3 per day. The brinepurge stream composition is estimated (based on preliminary salt composition) as 200 to220 g/l NaCl, 100 to 120 g/l Na2SO4 and less than 15 g/l NaClO3.

The chlor-alkali unit will also produce a solid (sludge) waste from the brine treatmentstage. The volume of this sludge is estimated at 0.05 m3 per tonne of sodium hydroxideproduced. It is Gunns’ intent to slurry this material and send it to the mill effluent system.The estimated composition of this sludge is as follows:

CaCO3, Mg(OH)2 and other minor insolubles 10 %

NaCl, Na2SO4, H2O 90 %

For the base case there would be no solid waste from the sodium chlorate.

Conclusion No.6

Solid waste is produced in the chemical plant as a result of the impurities in the salt andwater used to produce the brine for the chlor-alkali plant, and in the case of the merchantsodium chlorate plant from both the brine and mother liquor treatment.

In the base case the only solid waste produced is from the brine treatment area. Thecomposition of the solid waste is described in conclusion # 5, and the estimated wasteproduced is approximately 0.05 m3 per ton of sodium hydroxide produced. No solid wasteis generated from the chlorate plant since there is a closed circuit with respect to saltbetween the chlorine dioxide generator and the sodium chlorate cells.

In the case of the two merchant sodium chlorate plants the estimated total mud producedis expected to be 8 kg/tonne of merchant sodium chlorate produced, based on amerchant capacity of 30,000 tonnes per year this would equate to 240 tonnes per year(this can vary depending on the quality of the salt). The mud is from two sources: firstfrom the salt used to produce the brine needed (this is estimated at 3.6 kg/tonne or 108tonnes per year) and the second from treatment of the mother liquor in the plant toremove mainly sulphate that builds up in the liquor circuit (estimated at 4.4 kg/tonne or132 tonnes per year).

The brine mud 108 tonnes per year can be separated and handled in a similar manner tothe brine sludge from the chlor-alkali plant.

The mud produced from the chlorate mother liquor is more complex since it is formed asa result of the build-up of sulphates in the mother liquor. Calcium chloride (CaCl2) isadded to the sodium chlorate (NaCl03) solution to form calcium sulphate (CaSO4).Perchlorates are removed by adding potassium chloride (KCl) to form less solublepotassium perchlorate (KClO4), The mud slurry will be directed into the mud filter pressfor dewatering and the solid waste transported with the other solid wastes to a licensedWaste Facility. The expected composition of the combined solid wastes from the brine,acid wash, mother liquor treatment and mother liquor filter is given in the table below.Approximately once a month the solid wastes will be transported in a specially fitted andappropriately licensed truck.


Expected Initial Composition of the Combined Treatment Solids

ComponentA Sodium Chlorate

Weight (%)B

Calcium Sulphate - CaSO42H2O 48.00

Water - Free - H2O 32.00

Cellulose Filter Acid 5.80

Sodium Chlorate NaCl03 5.30

Calcium Carbonate CaCO3 5.10

Sodium Chloride NaCl 1.80

Magnesium Hydroxide Mg(OH)2 0.99

Iron (III) Hydroxide - Fe (OH)2 0.89

Calcium Chromate - CaCrO42H2O 0.39

A. After 2-5 years of operation, a second treatment process for perchlorateremoval from mother liquor will be started and the combined treatment solids will containabout 5% KClO4 as well.

B. The composition may vary significantly with variations in raw materials and thesequencing of the various treatment processes. The composition shown is anapproximation based on the other plants.

Conclusion No. 7

No comment.

Conclusion No. 8


Upon reviewing the overall material balance for the mill outlined in Volume 7, Annex IV ofthe DIIS, my interpretations of the chlorine dioxide usage in the bleach plant as indicatedon page 6 of 14 is 16730 t/a or 47.8 t/day. A peroxide or methanol based chlorine dioxideplant would produce the equivalent of 51.6 t/d of sodium sulphate (salt cake). The saltcake make-up listed on page 8 of 14 indicates that the recovery boiler requires 14222 t/a,or 40.6 t/day, this would result in 11 t/day of sodium sulphate being sent to the effluenttreatment plant.

Conclusion No. 9

I would suggest that the base case and the proposed Alternative 2A could both beconsidered “just-in-balance” options depending on the utilization of chlorine dioxide andhydrogen peroxide in the fibre line. The selection of bleaching chemical requirements aretypically determined by the type of fibre to be processed and the final quality or propertiesof the market pulp required to meet target markets. The chemical plant configuration isdetermined on the basis of these requirements. In the case of a mill such as Gunnswhere they are producing power and are remote from low cost sources of caustic andperoxide, the base case would (likely) be favoured.

7 Management and Operations

This has two parts: one will be the operator’s (Gunns or other party) environmental and safetymanagement processes.

The second relates to the design of the plant, and the methods used to identify the risks and designthe system to manage the risk.

During the process design stage, a hazard and operability study (HAZAN or HAZOP) would beconducted on the plant to identify the potential risk and modify the design or manage the risk andmitigate any impacts.

This study would also be used to ensure that all the safety interlocks needed to protect theenvironment, personnel and equipment are adequate.

ERCO is a member of Responsible Care, which is a set of initiatives undertaken by all members ofthe Canadian Chemical Producers’ Association (CCPA) to help safeguard employees, theenvironment and the communities with which we come in touch.

8 Conclusion

In conclusion, I consider that a properly designed, maintained and operated integrated chlorinedioxide process can consistently produce chlorine dioxide solution for the intended purpose ofbleaching wood pulp in which the residual elemental chlorine content can be equivalent to that ofthe methanol and hydrogen peroxide based chlorine dioxide process (0.005 to 0.01 kgCl2/kgClO2).

I trust that my explanation of the operation of the sodium chlorite plant designed and operated byERCO Worldwide demonstrates that the residual chlorine can be effectively managed in a chloridebased chlorine dioxide plant.

I have considered the definition of “Acceptable Modern Technology (AMT) as defined in the StatePolicy on Water Quality Management 1997 and Environmental Protection Policy (Air Quality) 2004as a technology which has a demonstrated capacity to achieve the desired emission concentration


in a cost-effective manner, takes account of cost-effective engineering and scientific developmentsand pursues opportunities for waste minimisation” in relation to Gunns’ proposed pulp mill. To thebest of my knowledge, I believe that a chemical plant comprised of an onsite chlor-alkali, sodiumchlorate plant and a chloride based chlorine dioxide process designed to comply with the lowchlorine residuals is within the spirit of the definition above.

From the broad perspective Gunns intends to produce surplus electrical power from biomass onthe site. The mill location is remote with respect to supply of sodium hydroxide and hydrogenperoxide, but is relatively local to Australian salt supplies. The installation of a modern chlor-alkaliplant capable of producing the majority of the sodium hydroxide requirements of the mill from theexcess power will provide the mill with stable long-term supply. Combining this with an on-sitechlorine dioxide plant and sodium chlorate plant further reinforces the mill’s competitiveness byconsuming local resources mainly within the mill’s control (power).

The use of hydrogen peroxide to ensure the production of high purity chlorine dioxide for bleachingand the use of hydrochloric acid in the bleach plant are cost effective methods for wasteminimisation, since the sodium sulphate contribution to the mill effluent will be reduced.

9 Provisional opinion

The opinions that I have expressed in this report are based on my experience and the experienceand advice provided to me by Gunns Limited and the consultants engaged to carry out specialiststudies for the Bell Bay Pulp Mill Project. Subject to any limitations and exclusions identified in thisstatement, my opinions are, to the best of my knowledge, complete and accurate in every materialrespect.

Through my inquiries I am satisfied that the opinions I have expressed are reasonable in regard toChlorine dioxide production processes.

10 Declaration

I have made all the inquiries that I believe are desirable and appropriate and no matters ofsignificance which I regard as relevant have, to my knowledge, been withheld from theCommission.


Attachment 1

1 Qualifications

1. Education and Development Courses

Ryerson University, formerly Ryerson Polytechnical Institute (Toronto,Canada)

1977 to 1980 Diploma in Chemical Technology (Industrial Chemical Option)

1980 to 1986 Bachelor of Technology (Chemical Engineering)

Development Program (external)

1991 Advanced Management Course (five-day course at Tenneco Inc.’straining office).

1992 Strategic Marketing of Technology Products (three day course offeredat California Institute of Technology).

1993 Account Development Strategies (three day course offered byLearning International)

1994 Managing Sales Force (five day course offered by Learninginternational)

1994 Winning Through Value-Oriented Marketing (two day course lead byPhilip Kotler, Sponsored by The Presidents Association of Canada).

1996 Kepner Tregoe: Problem Solving & Decision-Making

1998 Price as a Strategic Weapon (three-day course offered by AmericanManagement Association).

1998 Intermediate Finance and Accounting for the nonfinancial Executive(three-day course offered by American Management Association).

2000 The Management Program: a detailed two-week program offered atthe University of Michigan School of Business. This program focusedon Finance, accounting, organizational behavior, Marketing andStrategic thinking.

Development programs (internal)

1980 to present

Quality and Quality Systems


Leadership Development Process I & II (developed by Procorp Group)

Quality Function Deployment

House of Quality

Statistical Process Control Methods

ISO 9000

ISO 9001

Safety training

Process Safety Management

Risk Identification and Prevention

Behavioural Safety Training

SafeStart

Named as inventor on 14 issued patents relating to chlorine dioxide production.

Have presented several papers at Pulp and Paper industry conferences around the world.

2 Professional associations

Technical Association Pulp & Paper International (TAPPI), Member 1981 to 2006

Canadian Pulp and Paper Association (CPPA now PAPTECH), Member 1981 to present

Publications

Tappi

Reduction of Saltcake and Production of Caustic from a chlorine dioxide Generator, 1995Pulping Conference Proceedings

In-Plant Solutions for Decreasing effluent Conductivity in Bleached Kraft Pulp Mill;Managing Excess ClO2 Generator saltcake, 2003 Environmental Conference Proceedings

The Use of Hydrochloric Acid For ClO2 production, 1984 pulping conference (copy below)

3 Relevant publications

Publication # 1

THE SOLUBILITY OF CHLORINE IN AQUEOUS SOLUTIONS OF CHLORIDES AND THE FREEENERGY OF TRICHLORIDE ION

By M. S. Sherrill and E. F. Izard

Published in May 1931

Publication # 2 (see below)

ERCO WorldwideA division of Superior Plus LP

Operating DataERCO Buckingham

(12 Months)

Page 1 of 9

TimeKg/hr ClO2

operating rateKg/hr ClO2 Target rate

ClO2 MT/day rate Absorber ClO2 (gpl) Absorber Cl2 (gpl) Absorber HCl (N)

NaClO2 MT/day production rate Date %NaClO2 gpl NaClO2 gpl NaCl

NaClO2 g/l expressed as ClO2 g/l

NaCl g/l expressed as Cl2 g/l

Cl2 WT% in ClO2

Calculated g/l Cl2 in a 10 g/l ClO2 sol.

01-Sep-05 309 300 7.4 9.50 0.62 0.53 9.902-Sep-05 310 300 7.4 9.70 0.63 0.32 10.003-Sep-05 311 300 7.5 9.60 0.60 0.48 10.004-Sep-05 293 323 7.0 8.80 0.36 0.57 9.405-Sep-05 248 330 5.9 8.90 0.43 0.40 8.006-Sep-05 280 330 6.7 9.0 06-Sep-05 38.7 518 2.3 386.4 1.40 0.36 0.0407-Sep-05 301 330 7.2 9.30 0.51 0.53 9.708-Sep-05 311 330 7.5 9.80 0.66 0.52 10.009-Sep-05 299 330 7.2 9.90 0.49 0.50 9.6 08-Sep-05 38.4 514 2.4 383.4 1.46 0.38 0.0410-Sep-05 326 330 7.8 10.10 0.46 0.48 10.511-Sep-05 330 330 7.9 10.20 0.44 0.46 10.612-Sep-05 321 330 7.7 10.00 0.57 0.50 10.3 12-Sep-05 38.4 514 2.5 383.4 1.52 0.40 0.0413-Sep-05 0 330 0.0 0.014-Sep-05 0 330 0.0 0.015-Sep-05 0 330 0.0 0.016-Sep-05 320 330 7.7 10.10 0.44 0.27 10.3 16-Sep-05 38.6 518 2.5 386.4 1.52 0.39 0.0417-Sep-05 329 330 7.9 9.90 0.58 0.48 10.618-Sep-05 325 330 7.8 9.80 0.60 0.53 10.4 19-Sep-05 38.7 520 3.2 387.8 1.94 0.50 0.0519-Sep-05 327 330 7.8 10.70 0.46 0.48 10.5 19-Sep-05 38.7 520 3.2 387.8 1.94 0.50 0.0520-Sep-05 326 330 7.8 10.50 0.53 0.51 10.521-Sep-05 325 330 7.8 9.90 0.55 0.49 10.5 21-Sep-05 37 489 2.5 364.7 1.52 0.42 0.0422-Sep-05 346 348 8.3 10.30 0.58 0.50 11.123-Sep-05 349 350 8.4 10.60 0.58 0.48 11.2 22-Sep-05 38.7 519 2.6 387.1 1.58 0.41 0.0424-Sep-05 348 350 8.4 10.40 0.51 0.47 11.225-Sep-05 347 350 8.3 10.80 0.58 0.46 11.226-Sep-05 345 350 8.3 10.30 0.57 0.48 11.1 26-Sep-05 38.7 518 2.6 386.4 1.58 0.41 0.0427-Sep-05 346 350 8.3 10.20 0.57 0.49 11.128-Sep-05 346 350 8.3 10.30 0.53 0.48 11.129-Sep-05 345 350 8.3 10.10 0.57 0.48 11.1 29-Sep-05 38.6 517 2.8 385.6 1.70 0.44 0.0430-Sep-05 328 350 7.9 10.601-Oct-05 343 350 8.2 10.10 0.44 0.43 11.002-Oct-05 345 350 8.3 10.20 0.66 0.50 11.103-Oct-05 344 350 8.3 10.10 0.57 0.52 11.104-Oct-05 316 350 7.6 10.40 0.57 0.49 10.205-Oct-05 315 350 7.6 10.30 0.57 0.45 10.106-Oct-05 338 350 8.1 10.10 0.57 0.49 10.9 06-Oct-05 38.7 519 3 387.1 1.82 0.47 0.0507-Oct-05 345 350 8.3 9.90 0.49 0.50 11.108-Oct-05 345 350 8.3 10.60 0.52 0.47 11.109-Oct-05 345 350 8.3 10.30 0.57 0.47 11.110-Oct-05 343 350 8.2 10.10 0.70 0.46 11.0 10-Oct-05 38.6 517 3.2 385.6 1.94 0.50 0.0511-Oct-05 295 350 7.1 10.20 0.60 0.44 9.5 11-Oct-05 38.7 519 3 387.1 1.82 0.47 0.0512-Oct-05 337 350 8.1 9.70 0.49 0.42 10.8 12-Oct-05 38.7 518 3 386.4 1.82 0.47 0.0513-Oct-05 345 350 8.3 9.50 0.41 0.46 11.114-Oct-05 345 350 8.3 10.50 0.55 0.49 11.115-Oct-05 342 350 8.2 10.50 0.52 0.46 11.016-Oct-05 320 350 7.7 10.20 0.62 0.46 10.317-Oct-05 326 350 7.8 10.10 0.51 0.50 10.5 17-Oct-05 38.5 516 2.9 384.9 1.76 0.46 0.05

CONFIDENTIAL



(12 Months)

Page 2 of 9

TimeKg/hr ClO2






Cl2 WT% in ClO2


18-Oct-05 328 350 7.9 10.20 0.60 0.48 10.5 18-Oct-05 38.7 519 3 387.1 1.82 0.47 0.0519-Oct-05 317 350 7.6 9.30 0.68 0.49 10.220-Oct-05 348 350 8.3 10.20 0.58 0.47 11.221-Oct-05 301 350 7.2 10.40 0.63 0.45 9.722-Oct-05 288 288 6.9 10.20 0.51 0.47 9.323-Oct-05 287 285 6.9 10.30 0.55 0.44 9.224-Oct-05 333 328 8.0 9.90 0.53 0.46 10.7 24-Oct-05 38.9 521 2.7 388.6 1.64 0.42 0.0425-Oct-05 328 350 7.9 10.60 0.51 0.46 10.626-Oct-05 301 350 7.2 10.30 0.57 0.44 9.7 26-Oct-05 38.8 519 1.9 387.1 1.15 0.30 0.0327-Oct-05 238 260 5.7 9.80 0.51 0.49 7.728-Oct-05 156 165 3.7 7.80 0.57 0.52 5.029-Oct-05 153 155 3.7 4.90 0.60 0.55 4.930-Oct-05 152 155 3.6 5.60 0.58 0.55 4.931-Oct-05 156 155 3.8 6.80 0.53 0.51 5.0 31-Oct-05 38.5 514 2.3 383.4 1.40 0.36 0.0401-Nov-05 154 155 3.7 6.10 0.58 0.57 5.002-Nov-05 155 155 3.7 5.70 0.64 0.46 5.003-Nov-05 153 155 3.7 5.70 0.53 0.56 4.904-Nov-05 155 155 3.7 5.40 0.55 0.57 5.005-Nov-05 158 155 3.8 5.80 0.62 0.52 5.106-Nov-05 158 155 3.8 5.70 0.57 0.54 5.107-Nov-05 158 155 3.8 5.10 0.64 0.54 5.108-Nov-05 154 155 3.7 5.009-Nov-05 160 155 3.8 6.00 0.53 0.54 5.110-Nov-05 204 155 4.9 6.30 0.55 0.58 6.611-Nov-05 218 215 5.2 7.70 0.53 0.49 7.012-Nov-05 212 215 5.1 7.50 0.58 0.49 6.813-Nov-05 219 215 5.3 7.40 0.56 0.47 7.014-Nov-05 162 160 3.9 5.60 0.62 0.53 5.2 14-Nov-05 38.6 517 2.2 385.6 1.34 0.35 0.0315-Nov-05 158 155 3.8 5.50 0.58 0.54 5.116-Nov-05 155 155 3.7 6.30 0.57 0.49 5.0 16-Nov-05 38.6 517 1.8 385.6 1.09 0.28 0.0317-Nov-05 212 219 5.1 7.10 0.51 0.53 6.818-Nov-05 220 220 5.3 7.90 0.51 0.44 7.119-Nov-05 210 215 5.0 7.80 0.57 0.48 6.820-Nov-05 215 215 5.2 7.70 0.58 0.50 6.921-Nov-05 215 215 5.2 7.40 0.58 0.50 6.9 21-Nov-05 38.7 519 2.3 387.1 1.40 0.36 0.0422-Nov-05 215 215 5.2 7.40 0.57 0.50 6.923-Nov-05 215 215 5.2 6.924-Nov-05 214 215 5.1 6.925-Nov-05 213 215 5.1 7.50 0.55 0.35 6.826-Nov-05 215 215 5.2 6.927-Nov-05 218 215 5.2 8.10 0.58 0.48 7.028-Nov-05 208 215 5.0 7.80 0.50 0.46 6.7 28-Nov-05 38.7 518 2.1 386.4 1.27 0.33 0.0329-Nov-05 298 215 7.2 7.80 0.57 0.44 9.630-Nov-05 307 292 7.4 10.50 0.58 0.41 9.901-Dec-05 336 331 8.1 10.40 0.51 0.45 10.802-Dec-05 340 349 8.2 10.50 0.51 0.42 10.903-Dec-05 340 350 8.1 10.40 0.43 0.48 10.9

CONFIDENTIAL



(12 Months)

Page 3 of 9

TimeKg/hr ClO2






Cl2 WT% in ClO2


04-Dec-05 340 350 8.2 10.50 0.48 0.41 10.905-Dec-05 341 350 8.2 11.006-Dec-05 201 283 4.8 6.407-Dec-05 204 238 4.9 6.608-Dec-05 211 215 5.1 6.809-Dec-05 236 237 5.7 10.30 0.53 0.38 7.610-Dec-05 213 222 5.1 7.40 0.48 0.42 6.811-Dec-05 220 222 5.3 6.90 0.57 0.48 7.112-Dec-05 220 222 5.3 7.113-Dec-05 200 215 4.8 6.414-Dec-05 202 215 4.9 7.50 0.63 0.44 6.515-Dec-05 208 215 5.0 7.50 0.58 0.54 6.716-Dec-05 219 215 5.3 7.80 0.63 0.53 7.017-Dec-05 221 215 5.3 7.50 0.62 0.52 7.118-Dec-05 222 215 5.3 6.90 0.53 0.52 7.119-Dec-05 217 215 5.2 7.60 0.60 0.49 7.020-Dec-05 226 215 5.4 7.60 0.61 0.51 7.321-Dec-05 185 180 4.4 7.80 0.57 0.51 5.9 21-Dec-05 38.8 520 2 387.8 1.21 0.31 0.0322-Dec-05 155 155 3.7 5.023-Dec-05 155 155 3.7 6.20 0.66 0.40 5.024-Dec-05 150 155 3.6 5.80 0.65 0.30 4.825-Dec-05 154 155 3.7 5.10 0.58 0.54 4.926-Dec-05 151 155 3.6 5.50 0.60 0.62 4.827-Dec-05 156 155 3.7 5.40 0.63 0.51 5.028-Dec-05 155 155 3.7 5.0 28-Dec-05 37.2 492 2.4 367.0 1.46 0.40 0.0429-Dec-05 154 155 3.7 5.80 0.54 0.58 5.030-Dec-05 152 155 3.7 5.60 0.58 0.60 4.931-Dec-05 155 155 3.7 5.10 0.66 0.59 5.001-Jan-06 155 155 3.7 5.30 0.71 0.61 5.002-Jan-06 157 155 3.8 5.60 0.57 0.57 5.103-Jan-06 158 155 3.8 5.90 0.53 0.55 5.104-Jan-06 159 155 3.8 6.00 0.67 0.55 5.105-Jan-06 159 155 3.8 6.00 0.53 0.49 5.106-Jan-06 160 155 3.8 5.10 0.46 0.53 5.107-Jan-06 163 155 3.9 6.00 0.58 0.54 5.208-Jan-06 163 155 3.9 5.70 0.62 0.56 5.209-Jan-06 165 155 4.0 5.90 0.60 0.55 5.310-Jan-06 262 155 6.3 8.00 0.57 0.54 8.4 10-Jan-06 38.7 520 2.7 387.8 1.64 0.42 0.0411-Jan-06 139 160 3.3 4.512-Jan-06 156 160 3.7 5.70 0.53 0.42 5.013-Jan-06 158 155 3.8 6.10 0.53 0.50 5.114-Jan-06 157 155 3.8 5.70 0.56 0.54 5.115-Jan-06 153 155 3.7 5.70 0.56 0.49 4.916-Jan-06 273 241 6.5 5.80 0.64 0.54 8.817-Jan-06 281 270 6.7 9.60 0.34 0.46 9.018-Jan-06 275 270 6.6 10.30 0.48 0.17 8.819-Jan-06 286 270 6.9 10.50 0.45 0.35 9.2

CONFIDENTIAL



(12 Months)

Page 4 of 9

TimeKg/hr ClO2






Cl2 WT% in ClO2


20-Jan-06 275 267 6.6 10.30 0.69 0.40 8.821-Jan-06 265 265 6.4 9.40 0.57 0.47 8.522-Jan-06 248 265 6.0 9.50 0.58 0.49 8.023-Jan-06 0 265 0.0 0.0 23-Jan-06 38.8 521 2.9 388.6 1.76 0.45 0.0524-Jan-06 0 265 0.0 0.025-Jan-06 252 262 6.1 8.1 25-Jan-06 39 523 3.7 390.1 2.25 0.58 0.0626-Jan-06 244 255 5.9 9.40 0.44 0.32 7.827-Jan-06 265 280 6.4 9.00 0.46 0.49 8.528-Jan-06 286 285 6.9 10.20 0.46 0.46 9.229-Jan-06 286 285 6.9 10.50 0.43 0.44 9.230-Jan-06 304 340 7.3 10.40 0.44 0.40 9.831-Jan-06 273 299 6.5 10.50 0.53 0.42 8.801-Feb-06 278 285 6.7 10.10 0.66 0.47 8.902-Feb-06 279 289 6.7 10.50 0.43 0.44 9.003-Feb-06 296 285 7.1 10.20 0.39 0.42 9.504-Feb-06 283 286 6.8 10.10 0.39 0.41 9.105-Feb-06 288 290 6.9 10.00 0.42 0.39 9.306-Feb-06 291 290 7.0 9.70 0.43 0.44 9.407-Feb-06 277 290 6.6 9.80 0.51 0.44 8.908-Feb-06 283 290 6.8 10.10 0.46 0.42 9.109-Feb-06 292 290 7.0 9.90 0.52 0.44 9.410-Feb-06 273 287 6.6 10.30 0.55 0.45 8.811-Feb-06 285 285 6.8 10.10 0.50 0.46 9.212-Feb-06 285 285 6.8 9.98 0.50 0.44 9.213-Feb-06 255 285 6.1 10.30 0.53 0.44 8.214-Feb-06 274 285 6.6 8.815-Feb-06 295 285 7.1 9.80 0.58 0.43 9.516-Feb-06 290 285 7.0 10.10 0.48 0.44 9.317-Feb-06 287 285 6.9 10.30 0.46 0.46 9.218-Feb-06 291 285 7.0 9.80 0.58 0.44 9.419-Feb-06 293 285 7.0 10.40 0.50 0.46 9.420-Feb-06 282 285 6.8 10.40 0.47 0.45 9.121-Feb-06 206 219 5.0 7.90 0.48 0.38 6.622-Feb-06 214 215 5.1 7.50 0.55 0.54 6.9 22-Feb-06 38.9 521 2 388.6 1.21 0.31 0.0323-Feb-06 211 215 5.1 7.80 0.58 0.53 6.824-Feb-06 221 227 5.3 7.80 0.43 0.55 7.125-Feb-06 214 215 5.1 8.00 0.46 0.48 6.926-Feb-06 214 215 5.1 8.00 0.57 0.49 6.927-Feb-06 212 215 5.1 8.60 0.60 0.52 6.828-Feb-06 208 215 5.0 6.701-Mar-06 260 256 6.2 8.60 0.50 0.49 8.4 01-Mar-06 38.8 520 1.7 387.8 1.03 0.27 0.0302-Mar-06 288 285 6.9 10.70 0.60 0.44 9.303-Mar-06 290 285 7.0 10.40 0.55 0.44 9.304-Mar-06 289 285 6.9 10.40 0.46 0.45 9.305-Mar-06 289 285 6.9 10.60 0.46 0.45 9.306-Mar-06 250 285 6.0 10.30 0.50 0.43 8.007-Mar-06 283 285 6.8 10.00 0.62 0.45 9.1

CONFIDENTIAL



(12 Months)

Page 5 of 9

TimeKg/hr ClO2






Cl2 WT% in ClO2


08-Mar-06 287 285 6.9 10.30 0.50 0.46 9.209-Mar-06 288 285 6.9 10.30 0.49 0.45 9.310-Mar-06 287 285 6.9 10.70 0.54 0.43 9.211-Mar-06 286 285 6.9 10.30 0.67 0.44 9.212-Mar-06 286 285 6.9 10.30 0.47 0.46 9.213-Mar-06 288 285 6.9 10.20 0.46 0.45 9.2 13-Mar-06 38.8 520 1.6 387.8 0.97 0.25 0.0314-Mar-06 287 285 6.9 10.30 0.55 0.45 9.215-Mar-06 288 285 6.9 10.10 0.48 0.43 9.3 15-Mar-06 38.9 521 1.7 388.6 1.03 0.27 0.0316-Mar-06 288 285 6.9 10.20 0.51 0.45 9.317-Mar-06 289 285 6.9 10.50 0.56 0.42 9.318-Mar-06 291 285 7.0 10.50 0.50 0.44 9.419-Mar-06 291 285 7.0 10.70 0.46 0.41 9.420-Mar-06 251 265 6.0 10.50 0.53 0.44 8.121-Mar-06 244 255 5.9 9.40 0.72 0.49 7.922-Mar-06 249 255 6.0 9.20 0.63 0.46 8.023-Mar-06 266 275 6.4 8.624-Mar-06 278 285 6.7 10.10 0.45 0.40 8.925-Mar-06 272 285 6.5 10.40 0.50 0.42 8.826-Mar-06 285 285 6.8 10.30 0.57 0.39 9.227-Mar-06 314 311 7.5 10.20 0.49 0.43 10.1 27-Mar-06 38.7 519 1.9 387.1 1.15 0.30 0.0328-Mar-06 328 338 7.9 10.70 0.43 0.44 10.529-Mar-06 316 308 7.6 11.00 0.41 0.42 10.230-Mar-06 284 286 6.8 10.10 0.64 0.45 9.1 30-Mar-06 37 488 1.9 364.0 1.15 0.32 0.0331-Mar-06 311 383 7.5 10.30 0.48 0.46 10.001-Apr-06 305 330 7.3 10.40 0.44 0.29 9.802-Apr-06 319 330 7.7 10.10 0.46 0.44 10.303-Apr-06 293 330 7.0 10.70 0.48 0.44 9.4 03-Apr-06 38.9 521 2.1 388.6 1.27 0.33 0.0304-Apr-06 313 330 7.5 10.50 0.51 0.40 10.1 04-Apr-06 38.9 521 2.1 388.6 1.27 0.33 0.0305-Apr-06 310 330 7.4 10.40 0.51 0.47 10.006-Apr-06 320 330 7.7 10.70 0.50 0.44 10.307-Apr-06 329 330 7.9 10.70 0.48 0.44 10.608-Apr-06 338 330 8.1 10.10 0.64 0.45 10.909-Apr-06 319 330 7.7 10.00 0.48 0.40 10.3 10-Apr-06 38.5 516 2.4 384.9 1.46 0.38 0.0410-Apr-06 326 330 7.8 9.80 0.43 0.44 10.5 10-Apr-06 37 489 2.7 364.7 1.64 0.45 0.0411-Apr-06 321 330 7.7 10.30 0.47 0.56 10.3 11-Apr-06 38.5 515 3 384.1 1.82 0.47 0.0512-Apr-06 306 330 7.4 9.913-Apr-06 328 330 7.9 9.60 0.50 0.40 10.514-Apr-06 332 330 8.0 10.30 0.57 0.44 10.715-Apr-06 331 330 7.9 10.40 0.51 0.44 10.6 15-Apr-06 38.3 311 3.5 232.0 2.12 0.92 0.0916-Apr-06 331 330 7.9 10.40 0.48 0.44 10.6 16-Apr-06 37 488 2.6 364.0 1.58 0.43 0.0417-Apr-06 332 330 8.0 10.70 0.48 0.44 10.718-Apr-06 331 330 7.9 10.50 0.51 0.42 10.6 18-Apr-06 38.8 520 2.9 387.8 1.76 0.45 0.0519-Apr-06 312 330 7.5 10.30 0.52 0.40 10.0 19-Apr-06 38.6 517 2.9 385.6 1.76 0.46 0.0520-Apr-06 318 330 7.6 9.90 0.53 0.36 10.221-Apr-06 328 330 7.9 10.10 0.51 0.45 10.622-Apr-06 327 330 7.9 10.20 0.59 0.44 10.523-Apr-06 326 330 7.8 10.20 0.58 0.44 10.5

CONFIDENTIAL



(12 Months)

Page 6 of 9

TimeKg/hr ClO2






Cl2 WT% in ClO2


24-Apr-06 333 330 8.0 10.40 0.51 0.44 10.725-Apr-06 281 323 6.7 9.80 0.44 0.45 9.0 25-Apr-06 38.7 518 3.1 386.4 1.88 0.49 0.0526-Apr-06 292 300 7.0 10.50 0.51 0.43 9.4 26-Apr-06 38.7 518 3.3 386.4 2.00 0.52 0.0527-Apr-06 316 300 7.6 10.50 0.46 0.42 10.228-Apr-06 335 300 8.1 10.80 0.44 0.42 10.8 28-Apr-06 37 488 2.8 364.0 1.70 0.47 0.0529-Apr-06 336 300 8.1 10.90 0.50 0.43 10.830-Apr-06 335 300 8.1 10.70 0.46 0.42 10.801-May-06 336 300 8.1 10.40 0.51 0.43 10.8 01-May-06 38.6 516 2.9 384.9 1.76 0.46 0.0502-May-06 337 300 8.1 10.60 0.53 0.45 10.8 02-May-06 38.7 517 3.1 385.6 1.88 0.49 0.0503-May-06 337 315 8.1 10.30 0.60 0.43 10.904-May-06 337 335 8.1 10.40 0.48 0.42 10.805-May-06 339 335 8.1 10.50 0.51 0.46 10.906-May-06 337 335 8.1 9.90 0.48 0.44 10.807-May-06 336 335 8.1 10.10 0.55 0.45 10.808-May-06 334 335 8.0 10.40 0.54 0.44 10.7 08-May-06 38.5 514 3 383.4 1.82 0.47 0.0509-May-06 278 335 6.7 10.40 0.48 0.44 8.9 09-May-06 38.6 516 3 384.9 1.82 0.47 0.0510-May-06 329 335 7.9 9.90 0.51 0.39 10.611-May-06 328 335 7.9 10.30 0.46 0.43 10.512-May-06 338 335 8.1 9.90 0.56 0.46 10.913-May-06 341 339 8.2 10.80 0.37 0.44 11.014-May-06 344 345 8.3 10.20 0.51 0.44 11.1 14-May-06 37 489 2.8 364.7 1.70 0.47 0.0515-May-06 318 345 7.6 10.70 0.49 0.44 10.216-May-06 332 345 8.0 10.40 0.50 0.45 10.717-May-06 337 345 8.1 10.10 0.52 0.46 10.918-May-06 341 345 8.2 10.10 0.57 0.45 11.019-May-06 344 345 8.3 10.30 0.56 0.45 11.120-May-06 343 345 8.2 10.30 0.55 0.43 11.021-May-06 343 345 8.2 10.20 0.45 0.41 11.022-May-06 343 345 8.2 10.40 0.44 0.45 11.023-May-06 344 345 8.3 10.30 0.46 0.46 11.124-May-06 343 345 8.2 10.60 0.51 0.43 11.025-May-06 340 345 8.2 10.30 0.45 0.46 10.9 25-May-06 37 489 3.4 364.7 2.06 0.57 0.0626-May-06 341 345 8.2 10.20 0.53 0.45 11.027-May-06 340 345 8.2 10.40 0.44 0.45 10.928-May-06 322 345 7.7 9.70 0.44 0.45 10.429-May-06 335 345 8.0 10.40 0.53 0.45 10.8 29-May-06 38.5 515 3.7 384.1 2.25 0.58 0.0630-May-06 0 345 0.0 0.031-May-06 0 345 0.0 0.0 31-May-06 38.3 512 3.8 381.9 2.31 0.60 0.0601-Jun-06 332 345 8.0 10.702-Jun-06 295 345 7.1 10.20 0.48 0.44 9.503-Jun-06 314 345 7.5 9.50 0.62 0.48 10.104-Jun-06 335 345 8.0 10.40 0.51 0.26 10.805-Jun-06 339 345 8.1 9.80 0.46 0.44 10.9 05-Jun-06 38.4 514 3.2 383.4 1.94 0.51 0.0506-Jun-06 303 345 7.3 9.80 0.44 0.45 9.807-Jun-06 333 345 8.0 10.10 0.51 0.43 10.7 07-Jun-06 37 488 3.2 364.0 1.94 0.53 0.0508-Jun-06 334 345 8.0 10.30 0.55 0.45 10.709-Jun-06 336 345 8.1 10.40 0.53 0.44 10.8

CONFIDENTIAL



(12 Months)

Page 7 of 9

TimeKg/hr ClO2






Cl2 WT% in ClO2


10-Jun-06 337 345 8.1 10.30 0.49 0.42 10.811-Jun-06 336 345 8.1 10.30 0.50 0.41 10.812-Jun-06 336 345 8.1 10.40 0.51 0.45 10.813-Jun-06 346 345 8.3 10.10 0.58 0.46 11.114-Jun-06 306 338 7.3 10.10 0.58 0.47 9.8 14-Jun-06 37 487 3.2 363.2 1.94 0.53 0.0515-Jun-06 281 300 6.7 9.80 0.50 0.41 9.0 15-Jun-06 37 489 3 364.7 1.82 0.50 0.0516-Jun-06 334 337 8.0 9.60 0.48 0.39 10.717-Jun-06 331 340 7.9 9.70 0.50 0.46 10.718-Jun-06 303 340 7.3 8.90 0.62 0.50 9.7 18-Jun-06 37 488 3.2 364.0 1.94 0.53 0.0519-Jun-06 301 323 7.2 8.40 0.62 0.51 9.720-Jun-06 319 340 7.7 9.60 0.53 0.45 10.321-Jun-06 341 350 8.2 10.10 0.49 0.43 11.0 21-Jun-06 37 487 3.8 363.2 2.31 0.63 0.0622-Jun-06 343 350 8.2 10.10 0.58 0.47 11.023-Jun-06 344 350 8.2 9.80 0.53 0.46 11.124-Jun-06 348 350 8.3 10.20 0.58 0.44 11.225-Jun-06 350 350 8.4 10.10 0.51 0.46 11.226-Jun-06 0 350 0.0 0.0 26-Jun-06 37 488 3.3 364.0 2.00 0.55 0.0627-Jun-06 0 350 0.0 0.028-Jun-06 301 350 7.2 9.7 28-Jun-06 37 488 3.5 364.0 2.12 0.58 0.0629-Jun-06 335 350 8.0 9.60 0.55 0.38 10.830-Jun-06 339 350 8.1 10.10 0.46 0.50 10.901-Jul-06 354 350 8.5 10.20 0.53 0.47 11.4 01-Jul-06 37 488 3.6 364.0 2.18 0.60 0.0602-Jul-06 345 350 8.3 10.20 0.48 0.48 11.103-Jul-06 340 350 8.2 10.20 0.51 0.47 10.9 04-Jul-06 37 488 4.1 364.0 2.49 0.68 0.0704-Jul-06 305 350 7.3 9.8 05-Jul-06 37 488 3.9 364.0 2.37 0.65 0.0705-Jul-06 342 350 8.2 9.80 0.47 0.42 11.0 05-Jul-06 37 488 4.1 364.0 2.49 0.68 0.0706-Jul-06 334 350 8.0 9.90 0.55 0.45 10.707-Jul-06 332 350 8.0 9.90 0.55 0.45 10.708-Jul-06 350 350 8.4 10.20 0.54 0.46 11.309-Jul-06 343 350 8.2 11.010-Jul-06 330 350 7.9 10.20 0.45 0.44 10.6 10-Jul-06 37 487 3.7 363.2 2.25 0.62 0.0611-Jul-06 339 350 8.1 10.20 0.46 0.48 10.912-Jul-06 346 350 8.3 9.80 0.50 0.46 11.1 12-Jul-06 37 488 4 364.0 2.43 0.67 0.0713-Jul-06 342 350 8.2 9.20 0.46 0.49 11.014-Jul-06 252 350 6.0 9.10 0.48 0.41 8.115-Jul-06 322 350 7.7 10.416-Jul-06 334 350 8.0 10.10 0.67 0.44 10.717-Jul-06 308 350 7.4 9.80 0.60 0.47 9.918-Jul-06 309 350 7.4 10.20 0.51 0.46 9.9 18-Jul-06 37 488 4.3 364.0 2.61 0.72 0.0719-Jul-06 0 350 0.0 0.020-Jul-06 283 350 6.8 9.121-Jul-06 340 350 8.2 9.80 0.51 0.48 10.9 21-Jul-06 37.2 491 4.2 366.2 2.55 0.70 0.0722-Jul-06 350 350 8.4 11.3 22-Jul-06 37 489 3.9 364.7 2.37 0.65 0.0623-Jul-06 350 351 8.4 10.10 0.58 0.39 11.224-Jul-06 338 350 8.1 9.90 0.57 0.45 10.925-Jul-06 347 350 8.3 10.10 0.60 0.42 11.1 25-Jul-06 37.2 492 4.8 367.0 2.91 0.79 0.0826-Jul-06 329 350 7.9 9.60 0.54 0.45 10.6 26-Jul-06 37 488 5.2 364.0 3.16 0.87 0.09

CONFIDENTIAL



(12 Months)

Page 8 of 9

TimeKg/hr ClO2






Cl2 WT% in ClO2


27-Jul-06 340 350 8.2 9.60 0.50 0.46 10.928-Jul-06 358 350 8.6 10.30 0.48 0.50 11.529-Jul-06 358 350 8.6 9.70 0.51 0.47 11.530-Jul-06 359 350 8.6 9.50 0.44 0.47 11.5 30-Jul-06 37 487 5.9 363.2 3.58 0.99 0.1031-Jul-06 351 350 8.4 10.10 0.51 0.46 11.301-Aug-06 315 350 7.5 9.90 0.55 0.46 10.102-Aug-06 308 350 7.4 9.20 0.55 0.44 9.903-Aug-06 344 350 8.2 9.30 0.64 0.43 11.104-Aug-06 295 350 7.1 9.505-Aug-06 342 350 8.2 10.00 0.48 0.45 11.006-Aug-06 348 350 8.4 10.40 0.50 0.46 11.207-Aug-06 348 350 8.4 9.60 0.53 0.43 11.2 07-Aug-06 37 487 6 363.2 3.64 1.00 0.1008-Aug-06 350 350 8.4 10.20 0.41 0.47 11.209-Aug-06 343 350 8.2 9.80 0.46 0.49 11.010-Aug-06 336 350 8.1 10.10 0.51 0.50 10.811-Aug-06 286 350 6.9 10.40 0.48 0.37 9.212-Aug-06 351 350 8.4 10.20 0.44 0.44 11.313-Aug-06 355 350 8.5 10.70 0.53 0.46 11.4 13-Aug-06 37 488 6.2 364.0 3.76 1.03 0.1014-Aug-06 348 350 8.4 10.00 0.53 0.45 11.2 14-Aug-06 37 488 5.1 364.0 3.09 0.85 0.0915-Aug-06 349 350 8.4 10.30 0.52 0.47 11.216-Aug-06 353 350 8.5 10.50 0.56 0.47 11.4 16-Aug-06 37 487 5.1 363.2 3.09 0.85 0.0917-Aug-06 348 350 8.3 10.50 0.58 0.46 11.218-Aug-06 345 350 8.3 9.80 0.46 0.47 11.119-Aug-06 330 350 7.9 10.620-Aug-06 346 350 8.3 10.40 0.51 0.45 11.121-Aug-06 322 342 7.7 10.00 0.64 0.46 10.422-Aug-06 259 279 6.2 9.80 0.66 0.45 8.323-Aug-06 289 350 6.9 9.324-Aug-06 334 350 8.0 10.00 0.48 0.37 10.825-Aug-06 319 350 7.7 10.40 0.48 0.45 10.326-Aug-06 342 350 8.2 9.70 0.58 0.42 11.0 26-Aug-06 37 487 4.3 363.2 2.61 0.72 0.0727-Aug-06 346 350 8.3 10.00 0.58 0.46 11.1 28-Aug-06 37 488 3.9 364.0 2.37 0.65 0.0728-Aug-06 351 355 8.4 9.80 0.46 0.44 11.3 28-Aug-06 37.1 489 4 364.7 2.43 0.67 0.0729-Aug-06 351 355 8.4 10.30 0.50 0.45 11.330-Aug-06 334 355 8.0 10.30 0.58 0.46 10.731-Aug-06 352 355 8.4 10.20 0.53 0.45 11.301-Sep-06 356 355 8.5 10.70 0.57 0.46 11.402-Sep-06 357 355 8.6 11.00 0.57 0.45 11.503-Sep-06 335 355 8.0 10.70 0.50 0.44 10.8 03-Sep-06 37 487 4 363.2 2.43 0.67 0.0704-Sep-06 355 355 8.5 10.60 0.53 0.45 11.405-Sep-06 359 355 8.6 10.60 0.58 0.45 11.606-Sep-06 350 355 8.4 10.40 0.43 0.45 11.2 06-Sep-06 37 487 4 363.2 2.43 0.67 0.0707-Sep-06 339 355 8.1 10.30 0.54 0.42 10.908-Sep-06 298 355 7.2 9.609-Sep-06 275 355 6.6 8.8 09-Sep-06 37 488 4.3 364.0 2.61 0.72 0.0710-Sep-06 340 355 8.2 9.80 0.51 0.29 10.911-Sep-06 356 355 8.5 10.70 0.46 0.42 11.5 11-Sep-06 37 488 4.6 364.0 2.79 0.77 0.08

CONFIDENTIAL



(12 Months)

Page 9 of 9

TimeKg/hr ClO2






Cl2 WT% in ClO2


12-Sep-06 361 360 8.7 10.30 0.60 0.46 11.613-Sep-06 352 360 8.5 11.3 13-Sep-06 37 488 4.114-Sep-06 365 360 8.8 10.20 0.64 0.45 11.715-Sep-06 366 360 8.8 10.20 0.41 0.47 11.816-Sep-06 364 360 8.7 10.50 0.60 0.46 11.717-Sep-06 358 360 8.6 9.90 0.45 0.48 11.5 17-Sep-06 37 488 4.3 364.0 2.61 0.72 0.0718-Sep-06 365 360 8.8 10.60 0.55 0.46 11.7 18-Sep-06 37 487 3.9 363.2 2.37 0.65 0.0719-Sep-06 357 360 8.6 10.40 0.62 0.46 11.520-Sep-06 357 360 8.6 10.00 0.64 0.43 11.521-Sep-06 361 363 8.7 9.90 0.66 0.46 11.622-Sep-06 354 370 8.5 10.60 0.55 0.46 11.4 22-Sep-06 37.2 492 4.4 367.0 2.67 0.73 0.0723-Sep-06 348 370 8.3 10.70 0.58 0.46 11.224-Sep-06 364 370 8.7 10.20 0.55 0.48 11.725-Sep-06 229 278 5.5 10.60 0.51 0.46 7.4 25-Sep-06 37 486 4.1 362.5 2.49 0.69 0.07

9.44 0.5337.88 501.46 3.27 374.0 1.98 0.53 0.05

CONFIDENTIAL


4 Employment history, achievements and projects worked on

EDWARD J. BECHBERGER

2. Work History

2005 to present Vice President & General Manager International Operations

This position reports to the President with the responsibility for all of ERCO’s interests, whichincludes both product manufacturing and sales of chemicals and technology.

June 2003 to 2005 V.P. Sales & Marketing

This position reported to the President with the responsibility for the marketing, sales anddistribution of all of ERCO’s products, both chemical and technology.

The chemicals sales responsibility included Sodium Chlorate, chlorine, sodium hydroxide,hydrochloric acid, calcium hypochlorite and sodium chlorite.

The technology responsibility included the development, sale, design, procurement,commissioning and ongoing servicing of proprietary technology that converts the sodiumchlorate to chlorine dioxide a gas that is used to remove lignin from pulp and sodium chloritefor the water treatment and specialty business.

1998 to June 2003 Commercial Director Pulp & Paper Strategic Business Unit

This position reported to the Vice President (later changed to President) of the Pulp & PaperBusiness Unit and has two primary responsibilities.

The first is the marketing and sale of the business unit’s only chemical product: SodiumChlorate, with a total production capacity of 460,000 tonnes from five plants located acrossCanada and one in the South Eastern US.

The second responsibility for the development, sale, design, procurement, commissioning andongoing servicing of proprietary technology that converts the sodium chlorate to chlorinedioxide a gas that is used to remove lignin from pulp.

1995 to 1998 Marketing Director, Pulp & Paper

This position reported to the Vice President of Marketing and was responsible for the marketingand sale of sodium chlorate and the company’s proprietary technologies. During this period thecompany expanded its sodium chlorate capacity by 150,000 tonnes as a result of building aGreenfield plant in the southern US and acquiring an existing plant.

1993 to 1995 Manager Marketing


This position reported to the Vice President of Marketing with the responsibility for the sale anddistribution of sodium chlorate. Reporting to me was the Manager of Technical Services andCustomer Services.

1992 to 1993 Sales & Market Development Manager

This position reported to the Director of Technology with the responsibility of selling thecompany’s proprietary technologies, while laying the foundations for new products that were indevelopment.

This position had no direct reports but required close working relationships with customers,field reps., engineering and R & D departments to develop products or modification of existingproducts to meet industries changing needs.

1990 to 1992 Manager Technical Services

This position reported to the Director of Technology with the responsibility of managing anddeveloping the field service personnel, assisting the sales manager and dealing with anycustomer issues that arose as we completed the contract commitments.

During this two-year period the company had a record number (over 30) chlorine dioxidechemical plants to commission due to an environmental concern over dioxins.

1988 to 1990 Manager Electrochemical Marketing

This was a newly created position reporting to the Director of Technology with the responsibilityof developing a new product line based on the companies expertise in electrochemistry, andstrategic alliances with other companies that could provide value added expertise andequipment to complement our capabilities. I was responsible for establishing a budget and amarketing plan for this new business.

1981 to 1988 Technical Service Representative

This position reported to the Technical Service Manager. The responsibilities includedServicing and handling complaints from the sodium chlorate customers and commissioning thetechnology sold (chlorine dioxide plants).

The activities related to the technology involved the following: training the customers operatorsand shift supervisors, participating/leading the mechanical and safety checkout of the system,leading the chemical start-up, trouble shooting and resolving any issues, completing theperformance tests and ongoing service as required.

Since the sale of chlorine dioxide technology was a global business, I was involved in severalstart-ups overseas, with some projects lasting as long as six months it provided a greatlearning opportunity to understand operation of chlorine dioxide plant and it’s integration in thepulp mill.

1980 to 1981 Laboratory Technologist

This position reported to the Manager of Research and Development, and the duties involvedworking on assigned projects to support the production of sodium chlorate.


Attachment 2

Twelve Months of Operating Data from ERCO’s Buckingham Plant

(This data is listed in the next 9 pages)


Attachment 3

Test procedure for sodium chlorite and sodium chloride

ANSI / AWWA B303-05

Reprinted by permission. Copyright © 2005, American Water Works Association. Nofurther reproduction of this document may be made without written permission of thepublisher.


Attachment 4

The ERCOTM R5 Process

When by-product salt cake is not required the R5 process can be used, particularly where by-product sodium chloride can be utilized instead. The generating system consists of a Generator and a shell and tube Heat Exchanger. This unit operates at about 70oC and 190 mm Hg. The Generator liquor is circulated by an axial pump in the line between the Heat Exchanger and the Generator. The sodium chlorate feed is introduced before the Pump while the hydrochloric acid is added at the Heat Exchanger discharge. Steam is supplied to the heat Exchanger and, under vacuum conditions in the Generator, the water introduced into the system is evaporated resulting in crystallization of sodium chloride. The evaporated water acts as the chlorine dioxide gas diluent. The chlorine dioxide gas passes into an Indirect Contact Cooler where the evaporated water is partially condensed, thus increasing the condensation of the chlorine dioxide. This stream of chlorine dioxide, chlorine and water vapour then passes into the Chlorine Dioxide Absorber. The water flow to this

tower is adjusted automatically by an on-line photometric analyzer to provide the required chlorine dioxide solution strength. Chlorine leaving the chlorine dioxide absorber is absorbed in a Chlorine Absorption Tower to form the chlorine water or hypochlorite. The Generator, Indirect Contact Cooler, and Tower are maintained under vacuum by a steam jet ejector or vacuum pump. Generator slurry is pumped to a rotary vacuum filter. Here the sodium chloride is continuously removed and the mother liquor and wash water are returned to the Generator. The sodium chloride is fed by gravity into a tank for dissolving or handling as a wet salt depending on end use. Plants can be supplied in modular or for conventional construction. The same basic ERCO R3 Generating Plant is used for production of ClO2 by the R5 mode of operation. The plant can be readily adapted for any mode of ERCO R SERIES ClO2 operation. The R5 process is disclosed in Canadian patents No. E 85-956784 and E 90-956783 owned by ERCO

Worldwide. Similar patents are owned by Sterling Canada Inc. in many other countries. The R5 Process incorporates technology developed by Dow Chemical Canada Inc. under Dow’s U.S. Patent No. 4, 137,296 and Canadian Patent No. 1,223,715.

CHEMICAL CONSUMPTION

INPUT Kg/kg ClO2

Sodium Chlorate 1.70

Hydrochloric Acid 1.30

CREDITS

Sodium Chloride 1.00

Chlorine 0.70

REFERENCE PLANTS

CUSTOMER / LOCATION CPFP Dryden, Ontario, Canada Oulu Oy Oulu, Finland Enzo Gutzeit Imatra, Finland


Attachment 5

Standard ERCO R5 flow diagram indicating the location of hydrochloric acid and hydrogenperoxide addition to the process for low chlorine content in the chlorine dioxide solution

Air

Hydrogen Peroxide

Hydrochloric Acid


Attachment 6

Overview of ERCO Worldwide

ERCO Worldwide has a 100-year history producing chemicals and a long history of supplyingenvironmentally preferred chlorine dioxide technology to the pulp and paper industry and chlor-alkali products to the water treatment industry.

The Pulp and Paper and the chlor-alkali business of ERCO Worldwide (ERCO) together employapproximately 400 people and operate seven manufacturing facilities – two in the United States sixin Canada and one in Mininco, Chile:

• Buckingham, Quebec;

• Thunder Bay, Broadway, Ontario;

• Hargrave, Manitoba

• Grande Prairie, Alberta;

• Saskatoon, Saskatchewan;

• North Vancouver, British Columbia;

• Valdosta, Georgia, USA.

• Port Edwards, Wisconsin, USA

• Mininico, Chile

ERCO’s Pulp and Paper business is the leading worldwide supplier of chlorine dioxide technologyand one of the world’s leading suppliers of sodium chlorate to the pulp and paper industry. Sodiumchlorate is an industrial salt used primarily for the manufacture of chlorine dioxide--the cornerstoneof a progressive bleaching process used in the pulp and paper industry that reduces pollution. Thisprocess, known as elemental chlorine-free bleaching (ECF), has a superior environmental trackrecord and yields high quality, environmentally friendly white paper products.

The company also designs and licenses large-scale, proprietary chlorine dioxide generators.These generators are used to produce chlorine dioxide at pulp mills for the elemental chlorine freebleaching process.

ERCO’s chlor-alkali business serves the municipal and industrial water treatment, oil & gasacidizing, mining and pulp and paper industries.

The facility at Port Edwards is now an integral part of the chemical manufacturing group of SuperiorPlus LP. The acquisition of the Port Edwards facility enables the ERCO group to now supply chlor-alkali products from the USA as well as Canada. In addition to chlor-alkali products, the PortEdwards facility produces caustic potash and potassium carbonate used in the glass, soap,agriculture, de-icing and alkaline batteries.


Page 2

ERCO has been the proud recipient of the Canadian National (CN) Safe Handling Award atthe North Vancouver, BC facility from 1998 to 2002; Grande Prairie, AB facility for 1993 and1995-2002; Saskatoon, SK facility for 1992 and 1994-2002 and Bruderheim, Alberta for1996, 1998, 2000-2003. As reported by CN, only one other company in Canada hasachieved a better record. The award is recognized throughout the industry as a mark ofcommitment to perfection in loading and shipping regulated materials. CP Rail awarded theBuckingham facility the CPR Chemical Shipper Safety Award for the 6th consecutive year.

ERCO is also pleased to have received many awards for greenhouse gas emissionsreduction, safety performance, Award of Excellence in the category of educationalinnovations, quality management, and recognition from the University –Industry Synergy fromNatural Sciences and Engineering Research Council of Canada for long-lastingenvironmental and economic benefits for the pulp and paper and water treatment industries.And in November 2006 ERCO was named the "2006 Manufacturer of the Year" at theValdosta, Georgia, U.S.A. Lowndes County Chamber of Commerce's Salute toManufacturers breakfast.

ERCO is recognized for the value-added services it provides -- not only in customer serviceregarding product usage, but also in the engineering and technical support to meet the needsof the pulp and paper and water treatment industries around the world. ERCO has served thepulp and paper industry since the early 1940's and is leading the development andimplementation of environmentally preferred technology in municipal water treatment.

The Chlorine Institute recognized the Port Edwards facility for 5,000,000 work hours withouta lost time accident. This represents 37 years without an incident. They are the First in NorthAmerica plant to meet this performance. It is an indicator of the commitment the workforcehas to that plant’s success.

ERCO’s engineering and sales offices are based in Toronto, Ontario, Canada. The businessis a division of Superior Plus LP, which has its head office in Calgary, Alberta.

For more information telephone 416-239-7111 or visit our website at:www.ercoworldwide.com

November 2006

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